Economics Questions and Answers

Economics

There are a number of benefits that come from competition in markets. They include: Consumers get the widest possible variety of goods. If there is some sort of good that consumers might want,...

Latest answer posted April 25, 2012 1:14 pm UTC

1 educator answer

Economics

Supply shocks are events that cause the supply of a given good or service (or of most goods and services) to change drastically and quickly. There can be supply shocks that lower supply and supply...

Latest answer posted November 21, 2012 3:07 pm UTC

1 educator answer

Economics

Moral hazard does not necessarily bring risks to the firms themselves. It may bring more risk to the government and to society than to the firm. However, it is possible, depending on what the...

Latest answer posted February 13, 2013 3:41 pm UTC

1 educator answer

Economics

This statement of the components of Gross Domestic Product is not complete. It is missing one major component. All of the components listed here are parts of GDP when GDP is measured using the...

Latest answer posted July 12, 2012 2:47 am UTC

1 educator answer

Economics

The direct action the central bank can take is to purchase foreign money (perhaps dollars or pounds) using newly-created Euros. This will effectively increase the demand for foreign currency,...

Latest answer posted May 6, 2016 9:13 pm UTC

1 educator answer

Economics

The statement that you have given here is the law of demand. The law of demand has to do with how much of a given good or service consumers will be able and willing to buy at a given price. Not...

Latest answer posted September 30, 2012 2:56 pm UTC

1 educator answer

Economics

This previous answer is not correct from an economic point of view. For example, in economic terms, demand can never determine supply. Supply is defined as the amount of some product that...

Latest answer posted October 16, 2011 12:19 pm UTC

2 educator answers

Economics

The person is willing to give either of Jones or Smith the $100 note based on the amount they bid. Nash equilibrium is the situation where both Jones and Smith are making a decision that gives each...

Latest answer posted April 29, 2012 1:18 pm UTC

1 educator answer

Economics

The reason why the Fed would follow a contractionary monetary policy is because they feel that inflation is a problem or that it might soon become a problem if it is not checked. The Fed wants to...

Latest answer posted March 13, 2013 5:08 pm UTC

1 educator answer

Economics

There are a number of reasons why the use of fiscal policy and monetary policy would be a better approach in this case. First, if trade barriers are erected, the flow of foreign goods into the...

Latest answer posted January 11, 2013 1:37 am UTC

1 educator answer

Economics

The statement that you have given here is the law of supply. The law of supply has to do with how much of a given good or service producers will be able and willing to produce and sell at a given...

Latest answer posted September 30, 2012 2:52 pm UTC

1 educator answer

Economics

For married individuals if the marginal tax rates and the appropriate income brackets for the year 2010 are used, the income of the couple can be divided into the following: $16750 taxed at 10%...

Latest answer posted April 11, 2011 2:22 am UTC

1 educator answer

Economics

The major reason for this is that the US dollar is what is called a "reserve currency." This is a currency that is kept by many foreign governments as a large part of their supply of foreign...

Latest answer posted April 7, 2011 8:52 am UTC

1 educator answer

Economics

If I understand this correctly, your scenario is one in which everyone has more money than they used to, but no one would gain or lose relative to anyone else. Economically speaking, what this...

Latest answer posted October 5, 2012 1:47 am UTC

1 educator answer

Economics

There is no way to actually draw graphs on here for questions like these. However, you can follow this link to find (just scroll down a little) graphs that show this process. Basically, when you...

Latest answer posted December 6, 2012 3:08 am UTC

1 educator answer

Economics

Organized crime can be gang- or mob-related, but in this case, since we're discussing 9/11, I will discuss it in relation to terror groups. Organized crime can pose a significant threat to supply...

Latest answer posted July 5, 2019 2:11 pm UTC

1 educator answer

Economics

There is no way to actually draw graphs on eNotes for questions like these. However, you can follow this link to find (just scroll down a little) graphs that show this process. Graphing this...

Latest answer posted December 6, 2012 3:27 am UTC

1 educator answer

Economics

Assuming that the person is not going to be in the elite of the command economy, their quality of life would drop. They would have less access to material goods and they would have less freedom....

Latest answer posted February 27, 2012 11:51 pm UTC

1 educator answer

Economics

A positive externality exists when people who are not part of an economic transaction gain benefits from that transaction. A person attending college definitely creates positive externalities for...

Latest answer posted May 9, 2012 8:20 pm UTC

1 educator answer

Economics

In the short run, a carbon tax such as the one set to go into effect next July would increase costs on industries that use a great deal of energy. These costs would most likely be passed on to...

Latest answer posted October 5, 2011 2:41 pm UTC

1 educator answer

Economics

An absolute advantage means the ability of a nation or firm to produce more of a given good or service than another nation or firm. A comparative advantage is more complex, taking opportunity cost...

Latest answer posted March 22, 2020 6:57 pm UTC

1 educator answer

Economics

The best answer for this is the first option. An expansionary fiscal policy (cutting taxes and raising government spending in hopes of increasing aggregate demand) is most likely to be effective...

Latest answer posted December 1, 2012 11:18 pm UTC

1 educator answer

Economics

There are many factors that can shift a supply curve. We call these nonprice determinants of supply. Among them are: Number of sellers. All other things being equal, if more people start to make...

Latest answer posted March 19, 2013 3:09 pm UTC

1 educator answer

Economics

There are definitely goods that are income inferior. These are goods for which demand decreases as incomes rise. With most goods, increases in income cause increases in demand. This makes sense...

Latest answer posted February 7, 2013 9:12 pm UTC

1 educator answer

Economics

Restricting competition is not going to reduce the chances of bank failure. It could be argued that a bank facing no competition and which is the only one available for people could actually...

Latest answer posted March 24, 2012 4:57 pm UTC

9 educator answers

Economics

In the first scenario, Motown Hydro is practicing first degree price discrimination, while in the second scenario Motown is practicing third degree price discrimination. Second degree price...

Latest answer posted December 3, 2015 5:49 am UTC

1 educator answer

Economics

This statement is true. All other things being equal, an increase in the price of cheese causes a decrease in the supply of pizza which causes the price of pizza to rise. One of the factors that...

Latest answer posted May 17, 2012 5:34 am UTC

1 educator answer

Economics

Efficiency or cost effectiveness are the two names one gives to “cost per win.” Moneyball, the 2011 film adapted from journalist/author Michael Lewis’s 2003 nonfiction book of the same title, is...

Latest answer posted March 7, 2019 2:46 am UTC

1 educator answer

Economics

Laissez faire is the economic policy by which the government refrains from regulating the economy as much as possible. “Laissez faire” is a French phrase that is typically translated to mean “allow...

Latest answer posted October 30, 2012 10:06 pm UTC

1 educator answer

Economics

There will definitely be less and less undeveloped land in the future. There will always be some areas that are much more sparsely populated though. The question is when we are going to need to...

Latest answer posted February 27, 2012 10:24 am UTC

3 educator answers

Economics

To determine your tax liability when your income is at $50,000, you do not need to know your marginal tax rate. All you have to know is your average tax rate. Your average tax rate tells you how...

Latest answer posted May 13, 2013 5:25 am UTC

1 educator answer

Economics

Dambisa Moyo's work on economics and public policy has been highly influential and controversial since her first bestseller, Dead Aid, appeared in 2009. Many reviews of Dead Aid in the liberal...

Latest answer posted November 13, 2020 8:44 pm UTC

1 educator answer

Economics

An increase in government spending is used as a means to bring the economy out recession. This is usually done by borrowing funds and is referred to as deficit spending. An increased spending by...

Latest answer posted May 8, 2011 12:32 pm UTC

2 educator answers

Economics

The higher the required reserve ratio, the less deposits will expand. This is how the required reserve ratio impacts deposit expansion. When a person deposits money in the bank, some is held as...

Latest answer posted August 14, 2012 3:42 am UTC

1 educator answer

Economics

The more often that workers’ wages could be adjusted to match prices, the more vertical the short run aggregate supply curve (SAS) would be. It would come to resemble the classical version of the...

Latest answer posted November 21, 2012 4:34 pm UTC

1 educator answer

Economics

If a person does not pay taxes before the due date, an interest is charged on the amount that has to be paid till the date it is actually paid. The rate of interest is not a constant one and is...

Latest answer posted April 11, 2011 4:24 am UTC

1 educator answer

Economics

As a general rule, yes.In general, unemployment is inversely proportional to overall economic development. However, countries that are on an upward development trajectory have very low...

Latest answer posted January 21, 2016 6:47 pm UTC

1 educator answer

Economics

There are at least two ways in which excessively low interest rates could undermine an economy. First, low interest rates could lead to inflation. If interest rates are kept too low, it will be...

Latest answer posted May 14, 2011 11:40 am UTC

1 educator answer

Economics

The various definitions of the money supply (things like M1 and M2) are important because they tell us about the amount of money that is in the economy. It is important to have different measures...

Latest answer posted July 17, 2011 8:56 am UTC

1 educator answer

Economics

First, please note that in technical economic terms, you can never increase supply by increasing the price of a good. A price increase can cause a change in the quantity supplied, but it cannot...

Latest answer posted September 2, 2013 5:33 am UTC

1 educator answer

Economics

Stephen Cecchetti, whose combination of extensive academic research and practical experience in international financial matters make his a particularly valuable opinion, has consistently noted not...

Latest answer posted June 24, 2013 3:18 am UTC

1 educator answer

Economics

The above posters make wonderful points. Essentially, it would be up to the African nations to decide if American and European ways are for them. Many changes must be made for African nations to...

Latest answer posted June 5, 2012 5:49 pm UTC

4 educator answers

Economics

The imbalance of resources and desires is the same thing as scarcity; this is the fundamental economic problem. It applies to producers as much as to consumers. All producers need to use resources...

Latest answer posted September 21, 2012 5:04 am UTC

1 educator answer

Economics

The cost function is given as C(Q) = Q^2 +100 Fixed cost is the minimum cost to be incurred irrespective of the number of units that are being produced. In the expression for C(Q), the fixed...

Latest answer posted December 3, 2012 2:53 pm UTC

1 educator answer

Economics

First of all, let us note that Belgium is not a socialist economy. Belgium and the United States both have mixed economies. It is true that Belgium has an economic system that is somewhat more...

Latest answer posted July 21, 2013 12:37 am UTC

1 educator answer

Economics

Interest rates are increased when inflation is higher as a measure to control it. Banks operating in the US are required by law to maintain a certain percentage of reserves with the Federal...

Latest answer posted April 9, 2011 11:45 am UTC

2 educator answers

Economics

In the situation you describe, the key issue is that in order for the signed jersey to be translated into monetary value, it would need to be sold and replaced with viable currency. There are...

Latest answer posted January 9, 2018 10:45 am UTC

3 educator answers

Economics

No, a monopolist does not achieve efficiency in its production. Instead, it produces too little of its product and sells it at too high of a price. This means that a market that is controlled by...

Latest answer posted April 13, 2012 2:20 am UTC

1 educator answer

Economics

The reason for this is that the firm in perfect competition is a price taker whose marginal revenue will always be equal to the price of the good or service. In perfect competition, the price of a...

Latest answer posted August 7, 2011 12:49 pm UTC

1 educator answer

Economics

DVD recorders and VCRs can be seen as substitute goods for one another. Therefore, a drop in the price of DVD recorders will (all other things being equal) cause demand for VCRs to drop. This...

Latest answer posted November 3, 2012 6:46 pm UTC

1 educator answer

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